3 credit union predictions for 2023

As we face economic headwinds and a volatile market, a number of banking and technology trends are emerging worldwide. As a result, credit unions will have to innovate faster than ever to avoid falling behind competitors and ensure they’re positioned to take advantage of new opportunities when they arise. Here are 3 predictions for the year ahead to help your credit union prepare:

1. We will see further growth in digitization and automation.

As credit unions face slower growth and a competitive labor market, they’re turning to technology to help lower costs and attract talent. Prospective employees want to work with modern technology, so investing in up-to-date technology can, in turn, support employee growth and retention. Credit unions should look for tools that streamline and automate lower-value, manual tasks, which can save employees time and create more opportunity for high-value, face-to-face member interactions. By providing employees with a great digital experience, credit unions also optimize the experience for their members by delivering faster loan decisions and developing deeper relationships.

2. There will be an increased demand for sound financial literacy education, especially from Gen Z.

Thanks in part to popular influencer platforms such as TikTok and YouTube, Gen Z are beginning to make financial decisions earlier than other generations. Offering resources for how to set up investment accounts, IRAs, trust accounts and other financial protection vehicles will be crucial as credit unions begin to interact with a population of individuals who are new to these types of accounts. According to a report from Credit Union Times, the two things Gen Z wants most out of their service providers are values they align with and simple digital processes and interactions. They want the ability to open accounts and apply for credit cards with ease, online, but they also place a high importance on service. Credit unions are already set up to provide a more personal interaction with their members than traditional banks, so by developing and expanding their digital footprint, they can appeal to this younger generation more easily.

3. There will be an increased focus on a hybrid experiences.

While many credit union members are happy to use digital channels for day-to-day transactions such as paying their bills, most still want an actual human’s help when it comes to major life decisions like purchasing a home or starting a new business. The COVID-19 pandemic required many credit unions to transition to digital channels out of necessity, but many have realized that their members appreciate in-person engagement in addition to digital service. In 2023, it will be important for leaders to focus on a multi-channel member-centric approach, which will require good member data, member-centric processes, adaptable platforms and connected partners and employees in order to achieve a true hybrid balance that offers your members the best of both worlds: the ability to interact with humans and ask for assistance when needed, and the autonomy to complete other tasks on their own through a seamless digital platform.

As we move into 2023 and prepare for possible financial downward trends, the uniting thread comes down to seamless, digital platforms. Choosing the right partner for your digital transformation will help you continue to automate your processes, provide sound financial literacy for a new generation and optimize your hybrid member experience— allowing you to provide the very best care for your members.